The following content has been automatically translated by close 

Loopholes in Bank Systems Cause Business Credit Card Fraud

By Expert Author: Joe Owens | Article Abstract
Word Count: 435 words | Views: 323 view(s)
Business credit card fraud is a prevalent problem that has cost companies millions of dollars each year. There have been many reported incidents when fraudsters were able to steal private financial information from companies. One of their common strategies is getting into business credit card accounts and using them for fraudulent transactions. Small, medium, or even established enterprises are not spared from the perils of these activities.

The current loopholes in bank systems are partly to be blamed in the rise of credit card fraud. Even stolen cards that have already been reported and canceled by owners can still be used in fraudulent transactions. As long as fraudsters do not exceed the floor limit, they can use the stolen business credit cards since this kind of transaction does not go through banks’ electronic systems.

Floor limits serve to guard merchants and businesses from losses. On the other hand, scammers can also abuse them to dupe unsuspecting consumers. Many industry experts and even authorities are already questioning store policies on floor limits. As observed in many incidents, these floor limits contribute to the rise of credit card fraud cases by providing fraudsters with purchasing power, and a way to avoid card clearance, which can reveal whether the card is blacklisted.

Business credit cards with microchip technology are safe from this type of fraudulent activity since banks can trace and record every swipe. On the other hand, this technology has only been introduced to the banking industry a couples of years ago. Not all banks in the present have the technology and the budget to run the system. However, microchip technology will be a great means to add security to consumers, and ultimately avoid credit card frauds. It will also equip authorities with enough information to track down perpetrators.

The Credit Card bill to be passed in the Senate is also seen as an efficient vehicle to bring attention to this issue. The legislation aims to uphold the rights of consumers and ensure that banks carry out their responsibilities. If enacted, the bill will intensify the Congress’ role in monitoring these kinds of loopholes in bank systems.

Putting a cap to the rising business credit card fraud is not an easy task. As long as there are loopholes in systems of banking industry, con artists will continue to take advantage of consumers. Banks should have better business credit card fraud management solutions to protect their costumers. The industry can also coordinate with authorities and government agencies to encourage financial institutions to do a more efficient job in acting as vanguards of consumer rights.
Joe Owens

About the Author/Author Bio

A Computer Engineering graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats. For your inquiries, you may want to visit Business Credit Card

Article Source: http://www.ja.articlesphere.com/Article/Loopholes-in-Bank-Systems-Cause-Business-Credit-Card-Fraud/187075

Article Submitted: 2009-05-20 | This Article has been viewed 323 times.
Related Videos

 

Related Articles

 
 

Listed below are more articles related to the above article from the "Credit Cards" article category.

People interested in the above article "Loopholes in Bank Systems Cause Business Credit Card Fraud" are also interested in the related articles listed below:

 
When I was a young adult in college I remember the credit card companies pitching their tents on career day. They would lure us with gifts and enticing giveaways and promises of a bright future because we were proud owners of a shiny new credit card! After applying for every card I could get, I had 5 beautiful credit cards in my wallet that I would flash just to show how grown up I was, and before I knew it I was several thousands of dollars in debt and didn't know how I was going to pay it off.
In the present scenario, banks are facing huge losses in credit card portfolios and are planning to slash its credit card count. There has been a mixed reaction of the private and public bank have been revealed so far. Contrary to that some banks are coming with new ideas to promote credit or debit card portfolios.
Donating to good causes is a great way to help people who are less fortunate. People have always been able to help good causes by giving up their time or handing over cash. Now the process is even easier. Many charities now have branded credit cards that enable consumers to donate to the charity every time they spend. These charity credit cards are backed by major UK banks. The Royal Bank of Scotland, Halifax and the Cooperative Bank all support several charity credit cards.
If you have ever been asked by your wife, husband, child or friend to have someone else as an authorised signatory to you, i.e. a supplemental signatory, on your credit card account you no doubt gave this some serious thought. If you agreed to the request, the following are some reason why you should have a credit card in your own name and they have a credit card in their own name.
Keeping your credit card debts in check should be your sole aim in life if you want to live a financially viable life, because if you don't the fall out of having a lot of debt on your credit cards can start to affect other parts of your life. As much as credit cards are a handy spending tool, they are double the trouble if they are not taken care of and can give you problems that you could never have imagined when you first applied for the card.
It's an unfortunate fact that most students never get formal lessons in managing their credit and debt. For many young people, their first brush with being responsible credit card users won't come till they are in college - away from home and the guidance of mom and dad. The moment they step on campus, new college students will be wooed by major credit card companies, all of them eager to establish themselves as 'the first card in your wallet'.
How good would it make you feel if every time you spend money you get a reward? Pretty good I would think, well you can, with a credit card reward scheme, but only if you know how to manage these credit cards.
 
Article Directory Home All Categories Finance Credit Cards
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.